Adani Power Q2 profit at Rs298 crore
New Delhi: Adani Power Ltd posted a consolidated net profit of Rs297.71 crore in the quarter ended 30 September, mainly due to higher revenues and lower borrowing cost.
The company had suffered a consolidated net loss of Rs313.05 crore in quarter ended 30 September 2016, Adani Power said in a BSE filing on Saturday. According to the statement, its total income rose to Rs6,462.47 crore in second quarter from Rs5,670.25 crore a year ago.
The company’s consolidated net loss narrowed to Rs161.14 crore in April-September this fiscal from Rs545.68 crore in the corresponding period last year. It had suffered a loss of Rs6,174.10 crore in the fiscal ended on 31 March 2017.
Adani Power said average plant load factor (PLF or capacity utilisation) achieved during the second quarter of FY 2017-18 was 63% as compared to 70% in the second quarter of 2016-17. It explained that this drop was on account of customer back downs, planned maintenance shutdowns, and domestic coal shortages.
The increase in revenues was mainly due to receipt of interim relief from Haryana discoms as change in law for shortfall in domestic coal, pursuant to the Central Electricity Regulatory Commission’s (CERC) interim order on 28 September 2017, following the Supreme Court’s judgement of 11 April 2017. Its finance cost for Q2 FY18 was Rs1,389 crore as compared to Rs1,434 crore in the same period last fiscal.
The reduction in finance cost was primarily due to favourable currency movement during the quarter as well as reduction in short term loans. Finance cost for the first half of FY18 was Rs2,796 crore as compared to Rs2,885 crore a year ago.
Commenting on results Gautam Adani, chairman, Adani Power said, “The bidding for coal linkages under SHAKTI programme for plants having PPAs (power purchase agreements), which was held recently, will allow power plants such as our Tiroda and Kawai projects to get an assured supply of domestic coal”.
He further said, “The Saubhagya scheme will accelerate the provision of power connections to a vast, under-served section of our nation, and give a major impetus to power demand growth. The recently signed PPA of 1,496 MW with the Bangladesh Power Development Board will help Adani Power to diversify its portfolio”.